President Biden is urging Congress to target the American Bitcoin (CRYPTO:BTC) mining sector, taking inspiration from China's regulatory approach.
Despite recent approvals for Bitcoin ETFs, the focus is now on regulating the Bitcoin mining industry, which boasts a history of innovation and cleaner energy practices.
The proposed Digital Asset Mining Energy (DAME) tax, aiming to impose a 30% excise tax on electricity for Bitcoin mining, has drawn criticism.
Senator Cynthia Lummis warns that such a tax could drive major mining operations out of the U.S., potentially harming the industry's presence.
The debate underscores the challenge of balancing regulatory measures with the promotion of innovation in the digital asset space.